Hongkong Street shophouse with hotel and restaurant tenants on the market for $35 mil
Shophouse on Neil Road for sale at $17 mil
Orchard Boulevard MRT Condo is situated in the heart of Singapore’s shopping street, Orchard Road. The master plan of the area seeks to elevate its status as a cultural destination. Through showcase of Singapore’s heritage, art installations, street performances and festivals, the area surrounding Orchard Boulevard Condo is all set to become an exceptional cultural hub. This will provide an iconic experience for the residents.
The sale of a shophouse at 41 Hongkong Street, located off New Bridge Road in Upper Circular Conservation Area, is seeing a lot of investor interest, especially as it comes with approval for hotel use and F&B operations. Brilliance Capital, the exclusive marketing agent for the property, is hoping to capitalize on the post-Covid recovery and Singapore Grand Prix 2023, which benefitted both the upscale hotels and budget hotels.
The Singapore Tourism Board shows that the average room price is up 25.2% y-o-y to $275.21, with an average occupancy rate hovering at 80.09%, up 10.7% y-o-y. The current asking price for the 41 Hongkong Street shophouse is $35 million, which translates to $3,945 psf based on the built-up area of 8,872 sq ft.
Sammi Lim, founder and director of Brilliance Capital notes that the properties with a hotel licence are highly sought after. In 2016 the owners of 41 Hongkong Street undertook a $5 million retrofit which included a six-storey rear extension and a lift to every floor. The upper floors were then leased to the 30-room Hotel Nuve Elements, while the ground floor was leased to a Japanese restaurant Mizume.
The shophouses within the Secondary Settlements like Hongkong Street, have greater redevelopment flexibility than those within Historic Districts, provided the front façade is retained. Hotel Nuve Elements’ lift lobby and a rooftop terrace with a jacuzzi add to the property’s charm. Along with this a five-floor building at 18 Hongkong Street has been sold for $9.6 million, and a six-storey building at 17 Hongkong Street is on the market for $47.5 million.
Close to this cluster of Hongkong Street shophouses are the bars and restaurants voted by Asia’s 50 best bars in 2023, Greek restaurant Vios by Blu Kouzina, Italian restaurant Amo, Korean bistro bar Soollounge2 and Japanese restaurant Mizume. This is apart from the malls, clubs and other attractions nearby like Core CBD, Marina Bay, Chinatown and the Singapore River.
Lim believes that apart from shophouse and hotel investors, family offices could swoop in as a long-term investment towards a single office building for their use. Genuine buyers, including those that withdrew from the market for the past three years due to high asking prices, are returning. “The price gap will be bridged with sellers becoming more realistic in their asking prices,” she adds.